Swapo-linked company tied to N$3 billion oil project

Joseph Andreas, Veikko Nekundi and Andrew Kanime


A Swapo-owned company and the Namibia Industrial Development Agency (Nida) are allegedly linked to a contract worth more than N$3 billion for the construction and operation of a Lüderitz Bay oil and gas supply base.

The company, Guinas Investments, has in recent years financed the construction of Swapo’s new headquarters valued at around N$1 billion.

Details about this Lüderitz tender come after Cabinet on 8 July approved Namibian Ports Authority (Namport) to cooperate with Angola based Sonangol Integrated Logistics Services for a similar project at Walvis Bay.

The Swapo connection comes after Namport cancelled the advertisement for the Lüderitz project on Friday. Guinas Investments approached Namport last year to express their interest in the oil and gas supply base but it was rejected.

Andrew Kanime

“We considered your submission and while acknowledging and appreciating the unsolicited offer, I wish to highlight that Namport’s consideration of any such partnership is subject to an open competitive bidding process,” Namport chief executive Andrew Kanime says in a rejection letter written in February.

He adds: “This ensures continued compliance with procurement laws, secures competitive terms and upholds the highest level of transparency as required of a public institution like Namport.”

Kanime says the same communication and emphasis has also been made to other entities who have approached Namport with unsolicited offers for the same project.

“We will take an open market bidding process to source a partner,” Kanime said in February.

Namport then proceeded to advertise the tender in newspapers and digital platforms on 13 August but then cancelled it two days later.

Namport is being accused of double standards for rejecting Guinas Investments’ bid while it is attempting to get into bed with Sonangol Integrated Logistics Services.

Kanime did not respond to this particular question from The Namibian.

The Namibian understands that some Swapo party officials were not happy with Namport rejecting Guinas Investments’ bid in February while starting a process to form a partnership with Sonangol Integrated Logistics Services in June.

Veikko Nekundi

MINISTER’S CALL

The Namibian understands that minister of works and transport minister Veikko Nekundi summoned Namport’s leadership to a meeting attended by Kanime last week.

“Namport is an autonomous body and implements projects in the best interest of the company and country. However, issues of national security and sovereignty take precedence over any company’s operational matters. When these are compromised, as a line minister, I am duty bound to point out such concerns,” Nekundi told The Namibian yesterday.

The port authority’s top management was reportedly instructed to cancel the tender and include Nida as a partner.

Nekundi is said to have also been angered that he was not briefed about the project at a 1 August meeting between Namport officials and a State House adviser.

“I am fully briefed about major national projects taking place within my jurisdiction. There is a consultative process between myself and boards of state-owned enterprises (SOEs) reporting to me and as such I am kept abreast of strategic projects, especially when the input and expertise at ministerial level is required,” said Nekundi.

People familiar with this matter say there was a party expectation that the tender would involve Nida and a company called Guinas Investments, a ruling party-owned business chaired by businessman Joseph Andreas.

“It is sometimes required that cross-linkages collaboration between SOEs are established to meet a national strategic objective. However, in this case those have not been established. It is, therefore, premature at this stage to comment on such,” said Nekundi.

Sophia Shaningwa

Andreas is a known close associate to Swapo secretary general Sophia Shaningwa.

The Namibian understands that Andreas met with Namport top officials last year to show interest in the project.

“Guinas Investments had written a general letter to have the conversation with Namport. However, Namport rejected that a long time ago. The story just died there. Guinas Investments were just indicating their willingness to be participants,” says Andreas.

Kanime yesterday denied that the tender was cancelled due to political pressure.

“Namport decided to cancel the bid because there are serious indications of public and stakeholder confusion and misalignment regarding this project and the current environmental impact assessment study that is underway for the project in Robert Harbour and which includes a heritage impact assessment study on possible impacts to Shark Island,” he said.

He added: “Hence after careful consideration, Namport deemed it most appropriate to first clear up these misconceptions with the public and key stakeholders and not unduly risk compromising an otherwise very sensitive and important environmental impact assessment study.”

The Lüderitz project – valued at more than N$3 billion – was advertised as a design, build, own, operate and transfer concession contract, with a submission deadline set for 29 September.

It was intended to support offshore oil and gas activities in the Orange Basin, where major discoveries have drawn international attention.

It appears there are factions at the government on how this tender should be executed. Some officials believe that the tender should involve Nida representing a bigger stake of the state. In turn, Nida would work together with Swapo’s Guinas Investments.

Acting Nida chief executive Phillip Namundjebo yesterday said he was yet to receive the directive. Nida officials are said to be travelling to the coast this week.

Another faction, including some officials at Namport, are leaning towards public advertising.

Joseph Andreas

However, there are concerns that, in its current format, the process could favour a European company that has had close ties with the national port company’s top brass.

Swapo leaders are said to have had a close eye on this tender. Some sources suggest that there is an attempt to closely watch this tender to avoid using this project to fund party campaigns against the current Swapo leadership at the 2027 ruling party congress.

Guinas Investment has gained prominence over the past years. It benefited from the mass housing project.

Namport had initially set out strict pre-qualification criteria for bidders, including proof of financial capacity and international oil and gas industry experience. The sudden withdrawal of the tender has raised concerns among industry players about transparency and whether Namibia risks losing competitive proposals.

ANGOLAN CONNECTION

While the fight over who gets the Lüderitz port oil and gas base supply intensifies, information indicates that Cabinet has given the greenlight for Namibia to cooperate with Angolan-based company Sonangol Integrated Logistics Services.

This information is contained in a Cabinet action letter dated 8 June, written by Ministry of Works and Transport executive director Titus Ndove.

“Cabinet approves, in principle, the proposed cooperation between the Namibian Ports Authority and Sonangol Integrated Logistics Services for the development of an on-shore oil and gas supply base at the Port of Walvis Bay,” he says.

He adds: “Cabinet directs the Ministry of Works and Transport, in collaboration with the Ministry of Industries, Mines and Energy and the Office of the Attorney General to submit the proposed cooperation agreement/framework for Cabinet’s consideration and endorsement.”

The proposed partnership between Namport and Sonangol comes after president Netumbo Nandi-Ndaitwah visited the company in Luanda as part of her official visit to Angola in May.

“The tour aimed to draw lessons from Angola’s established petroleum sector, as Namibia seeks to develop its own oil industry following recent discoveries,” the Presidency said at the time.

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